The country’s tax agency ruled salaries and wages can be paid in digital currencies as long as the preferred digital coin is pegged to at least one standard or fiat or currency that can be directly convertible into a standard form of payment.
The rule allows Bitcoin, one of the most popular cryptocurrency in the world today can now be used to pay salaries in New Zealand starting from September 1. Now this rule is applicable to bonuses as well not just salaries.
The salary option will still be a part of the nation’s income tax scheme, and the ruling excludes self-employed workers from swapping their income to cryptocurrency.
Stirring existing controversies
Thomas Hulme, a solicitor at Mackrell Turner Garrett, told the FT:
“another step towards governments recognizing that actually people are wanting to be paid in” cryptocurrencies.
Cryptocurrencies are not as regulated as fiat currencies and their untrackable nature has been controversial since gaining traction in mainstream applications.Considering the highly volatile nature of Cryptocurrencies this is certainly a bold move.
Now that companies like Facebook and IBM are into the mix Cryptocurrencies are here to stay in one way or the other.Bitcoin currently trades at a 19-month high and might potentially break its own record of 20,000$ mark if it keeps up the current pace. Mainstream attention from credible companies have certainly helped the cryptocurrency shoot back into prominence.
The New Zealand government’s decision to legalize salary payments will surely turn eyeballs and maybe will inspire other countries to embrace the technology with open arms.
Follow us on Twitter, Facebook, Steemit, and join our Telegram channel for the latest blockchain and cryptocurrency news
Instant Crypto Credit Lines™ from only 5.9% APR. Earn up to 8% interest per year on your Stablecoins, USD, EUR & GBP. $100 million custodial insurance.
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
You might also like
More from Crypto
Tron Founder Justin Sun tweeted earlier today that TRON (TRX) is now the second most used protocol for DApps, though …
Are you a cryptocurrency/Blockchain lover, a would-be cryptocurrency writer? Find your unique writing voice with the CryptoTicker Writers' School. This …